This archive report was first published on 17 June 2020.
On June 17, 2020, the Competition Authority of Kenya (CAK) began investigating the bank accounts of supermarket chain Tuskys after the retailer defaulted on suppliers to the tune of Sh1.2 billion.
According to documents seen by the Business Daily, this is part of a wide-ranging investigation into one of the country's largest supermarket operators, which has lost the trust of the regulator.
CAK started looking into Tuskys' operations in April after reports emerged that it was not paying suppliers on time as provided for in their respective contracts.
For weeks now, shoppers have complained of missing essential goods on the retailer's shelves in a signal that some suppliers are severing ties with the company.
On Monday, CAK ordered Tuskys to settle the Sh1.29 billion debt by July 1-16.
Failure to comply with the order could result in a jail term of five years or a fine of up to Sh10 million or both.
CAK has ordered Tuskys to settle its outstanding debt in a specified schedule, failure to which the penalties will be imposed.
“Any person who fails to comply with the order of the authority commits an offence,” said CAK in a letter to the retailer.
While Tuskys has blamed its woes on the Covid-19 pandemic, a substantial part of the debt predates the disease, which was first confirmed in the country on March 12.
